Who Are Among the First Firms in the UK’s Scale-up Unit?

The Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) is leading the launch of the Scale-up Unit, announced by the Rachel Reeves, Chancellor of the Exchequer for the UK in October 2025. 

The unit was formed after calls from Allica Bank and Innovate Finance’s Unicorn Council. 

Demand for more regulatory support for high-growth financial services firms was met with the formation of the unit, which aims to assist firms in their mission to scale and invest, creating new high-skilled jobs across the UK as a result. 

The first cohort consists of Allica Bank, ClearBank, OakNorth, Nottingham Building Society, Monument and Zopa Bank.

In October 2025, the Chancellor announced at a conference for regulators and business leaders that scaling banks and insurers will be given bespoke support to navigate regulations and rules. 

At the time, the Chancellor said: “I am proud to be back in Leeds, home to the second largest financial services centre in the UK, to launch our new Scale-up Unit – which will super charge the growth of some of our most innovative companies. 

“But the vast number of rules make life complicated for these businesses. We are helping them cut through the noise, to grow and innovate. 

“That’s how we will boost jobs, boost growth and build an economy that works for, and rewards, working people.”

It is part of the UK Government’s Financial Services Growth and Competitiveness Strategy in order to support scaling banks with growth ambitions. 

Allica Bank has been selected as one of the first firms to gain access to the bespoke services offered by the unit. 

The London-based bank focuses on small and medium enterprises (SMEs) with between five and 250 employees, which it claims is an ‘overlooked’ sector that makes a third of the UK’s GDP. 

Allica Bank has engaged with the FCA and PRA closely on the unit’s design thus far. 

Some of the support that Allica will gain access to includes the ability to provide views on policy proposals which could impact the growth of challenger banks. 

Additionally, the Scale-up Unit will provide access to regulatory support in areas such as out-of-cycle capital reviews, as well as early-stage engagement on new product launches and regulatory processes. 

Richard Davies, CEO of Allica Bank, says: “Allica are delighted to be included in the initial Scale-up Unit cohort, having led the call for a dedicated regulatory unit to support firms as they scale. 

“The Unit should provide banks like Allica with more capital certainty and more regulatory support to boost lending to the established SMEs that power the UK’s real economy.

“Done well, the Scale-up Unit can support the government’s objective to make the UK the location of choice for financial services firms to invest, innovate and grow.”

The self-proclaimed bank for gamechangers ClearBank is also among the first to be part of the new unit. 

It will also receive regulatory support from the unit, with aims of supporting the bank as it attracts new customers, introduces new products and moves into new markets. 

ClearBank CEO Mark Fairless comments: "Scale‑ups are an important engine room of the UK economy, driving innovation, attracting inward investment and supporting the government's growth agenda. 

“ClearBank is delighted to be supporting this agenda and to contribute to a programme that recognises the vital role these firms play in strengthening UK plc. 

“This new Unit will help ClearBank to accelerate progress on critical initiatives that support our clients and the wider financial services sector in the UK.”

In recognition of the wide range of needs that financial services firms in the UK face, the Scale-up Unit is built on existing support structures: New Bank and Insurer Start-up Units, Regulatory Sandbox, Early and High Growth Oversight function, Pre Application Support Service (PASS) and AI Lab. 

Digital bank OakNorth is also in the initial cohort for the unit. 

The bank provide lending and credit services to enterprises with a turnover of between £1m (US$1.3m) to £100m (US$13.7m). 

Rishi Khosla, CEO and Co-Founder of OakNorth, comments: “We’re honoured to be part of the first cohort of the Scale-up Unit.”

“OakNorth was founded to empower breakthrough businesses – profitable and scaling lower-mid-market companies – who are too often overlooked by traditional banks and this tailored regulatory support will help us better deliver on that mission as we continue to scale. 

“Having already lent over US$21bn to these businesses, supporting the creation of tens of thousands of jobs and homes, we’re delighted to work closely with regulators to build an even stronger platform for sustainable growth.”